This post will look at lending between banks. Interbank Lending has seen some dramatic changes due to the financial colapse. The graph I found gives a very nice timeline with comments.
You can see the steady rise as confidence is growing in the US markets. With only the odd annomaly, 9/11 and in 05/06, it rises from $200,000 million to $500,000 million in 8 years. Then, due to the Lehman bankrupcy credit stopped flowing. This is one of the reason the economy has suffered to much. Low levels of interbank lending has stopped the US coping with it's dept as well as it could have done. Even with the federal reserves payments, it was unable to stop the financial crisis worsening.
Thank you for reading and please feel free to express your own views.
and how does exactly interbank lending effects finance? :o
ReplyDeleteI love graphs, interesting analysis.
ReplyDeletelol everyone loves graphs... but who loves pie charts
ReplyDeleteIf they bailed out Lehman we could have avoided a lot of this economic calamity?
ReplyDeletethey are killing us dry~!
ReplyDeletethe 9/11 glitch is interesting, any ideas on why?
ReplyDeleteinterresting. i guess the chrisis affected each and everyone.
ReplyDeleteI blame mortgage bankers
ReplyDeleteI'd like to see the sources behind this, but it is interesting to see the the stats at 9/11.
ReplyDeletei wish they wouldnt lend anymore
ReplyDeleteinteresting for sure, thanks for the graph
ReplyDeleteIt's amazing to see graphs and knowing that we're the one to live throughout.
ReplyDeleteSo interesting to see how the Lehman bankruptcy helped break that key level of support and started the ensuing downtrend.
ReplyDeleteinteresting thoughts
ReplyDeleteI don't really know very much about the Lehman bankruptcy, but I will do some research on the subject. I'm not very smart financially but I'll let you know what I come up with. Really great blog by the way... it's very interesting. I'll definitely follow. If you have any time check out my poem blog too! Chao!
ReplyDelete